Section 8 Fair Market Rent (FMR) for ZIP 78681 - 2027

Investment Score for ZIP 78681

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,640
1 Bedroom	$1,730
2 Bedrooms	$2,060
3 Bedrooms	$2,600
4 Bedrooms	$3,050
5 Bedrooms	$3,538
6 Bedrooms	$3,963
7 Bedrooms	$4,280
8 Bedrooms	$4,494

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,060	$261,102	0.79%	D
3BR	$2,600	$386,070	0.67%	D
4BR	$3,050	$539,460	0.57%	F
5BR	$3,538	$714,305	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 78681 (Round Rock, TX) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 78681 is set by HUD to ensure that low-income families can afford decent housing. For 2026, the FMRs are as follows: - 0BR: $1660 - 1BR: $1760 - 2BR: $2090 (which is 18.2% of the median household income) - 3BR: $2650 - 4BR: $3120 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. The Zillow median price for a 2BR home in 78681 is $267,623, which translates to a price-to-FMR ratio of 10.7x. This indicates that the actual rent prices are significantly higher than the FMRs. For instance, a 2BR unit priced at $267,623 would have an average monthly rent of approximately $2,230, which is much higher than the FMR of $2090. This creates a significant constraint for voucher holders. They will find it challenging to secure housing that fits within their voucher limits, especially for larger units like 3BR and 4BR homes. The gap between the FMR and actual rents suggests that landlords may be hesitant to accept vouchers due to the lower reimbursement rates compared to market rents. #### Affordability & Renter Profile ZIP code 78681 has a median household income of $137,819, which is quite high. Given that 26.1% of the population are renters, this implies that there are about 14,790 renters in the area. With such a high median income, most renters likely fall into the middle to upper-middle class category. However, the affordability of housing remains a challenge for those relying on Section 8 vouchers. The occupancy rate of 96.9% suggests that the rental market is relatively tight. There is little room for new supply to enter the market without putting pressure on existing rental prices. This tightness could lead to increased competition among renters, making it even harder for voucher holders to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 78681 presents a mixed picture. The high median income and tight rental market indicate strong demand for rental properties. However, the price-to-FMR ratio of 10.7x means that properties purchased at market rates would likely generate rental income far above the FMRs. For example, if an investor buys a 2BR property for $267,623, they might aim for a monthly rent of around $2,230 to achieve a reasonable cash flow. At this level, the property would not be eligible for Section 8 tenants who are limited to $2090 per month. Therefore, the ZIP code is only cash-flow positive at FMR for a small subset of properties that are priced below market value. Given the high median income and tight rental market, the investment grade for this ZIP code is generally high. However, for Section 8-focused investors, the grade is lower due to the limited number of properties that can be rented out at FMR levels. #### Specific Actionable Insights 1. **Focus on Lower Priced Properties**: Investors should focus on acquiring properties that are priced below the market average but still within the FMR range. For instance, a 2BR property priced at $200,000 would yield a monthly rent of approximately $1,667, which is just under the FMR limit of $2090. This would allow for a positive cash flow while being attractive to Section 8 voucher holders. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units (like 0BR and 1BR) might offer better opportunities for Section 8-focused investors. These units are typically less expensive and closer to the FMR limits. A 1BR property priced at $140,000 would yield a monthly rent of approximately $1,167, which is well below the FMR of $1760, providing ample opportunity for cash flow. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code unless they can find properties that are significantly undervalued relative to the market. The high price-to-FMR ratio makes it difficult to find properties that fit within the voucher limits, and the tight rental market further complicates matters. Investors looking for broader rental opportunities may find this ZIP code more appealing, but those specifically targeting Section 8 tenants should look elsewhere for better prospects.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.